Consumers are feeling some minor relief as summer approaches, however the weight of economic challenges is still exuding some downward pressure, according to the latest data from the University of Michigan.
In the preliminary results for June, the Index of Consumer Sentiment saw a positive shift for the first time in three months, jumping up 9% to 48.9 (up from 44.8 in May). Additionally, the index of Current Economic Conditions grew 5.7% to 48.4, and the Index of Consumer Expectations shot up 11.8% to 49.3.
Surveys of Consumers Director Joanne Hsu noted that the shift materialized as consumers felt “some relief due to the early-month easing in gasoline prices.”
While the improvements were observed across ages, education and political parties, Hsu also noted it was “particularly strong” with lower-income consumers, “consistent with the fact that gasoline comprises a larger share of their budgets.”
Hsu added that even with early gains in the June preliminary readings, consumers’ economic outlook is still “relatively dour” as they are focused on “kitchen table issues.” This negativity is noted in the index’s 19.4% year-over-year fall, also down 13% from January 2026 alone.
“They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run,” she continued.
Looking at these expectations as detailed in the report, the year-ahead inflation expectations saw a slight decrease to 4.6% (from 4.8% in May), but was still elevated from the 3.4% seen in February prior to the Middle Eastern conflict beginning. Long-run inflation expectations also declined slightly to 3.4% (from 3.9% in May), but are higher than 2024’s 2.8% to 3.2% range.
